As networking chipmaker Acacia Communications elected to terminate its $2.6 billion merger agreement with Cisco, first announced in July 2019, the latter has asked a Delaware court to stop Acacia from terminating the deal “until the court resolves these matters”.
On Friday, Acacia said in a release, “The proposed merger, announced in July 2019, was conditioned on the satisfaction or waiver of customary closing conditions, including obtaining necessary regulatory approvals within the timeframe contemplated by the merger agreement.”
“Because approval of the Chinese government’s State Administration for Market Regulation was not received within the timeframe contemplated by the merger agreement, Acacia did not have an obligation to close the merger before the arrival of the January 8, 2021 extended end date,” it added.
Cisco said that the company is seeking confirmation from the Delaware Court of Chancery that it has met all conditions for closing of its acquisition of Acacia, including approval of China’s State Administration for Market Regulation (SAMR).
On January 7, 2021, Cisco was notified by SAMR that the agency has determined that Cisco’s submission is “sufficient to address the relevant competition concerns.”